DIFFERENCE BETWEEN BALANCE OF PAYMENT AND TRADE
Hey
Guyz, Happy New Week to Everyone, Hope your weekend was great and restful. Mine
was indeed restful, don't you just love the weekend???. lolz. well its Monday
again but not to worry God is here to make it has blessed as possible for us.
May the rest of your day and week be awesome and full of love. So Let's get
straight to the Point...
Balance of
Trade
is the relationship between the values of a country's import and export of
visible items within a particular period of time. If visible Exports are more
than Visible Imports, the balance of trade is said to be favourable. On the
other hand, if the visible import exceeds the visible exports, the country is
said to have unfavourable balance of Trade.
Balance of
Payment
is a statement/record showing the relation between a country's total payment to
other countries and its total receipt from other countries in a year. In other
words, It is the comparism of the sum total of a country's receipt from export
and the total payment made for import. The Balance of Payment of a Country
shows yearly statement of income and expenditure from visible and invisible
export, and visible and invisible import respectively.
A
Country's Balance of Payment can be divided into three parts:
#Current Account- are the
expenditure and incomes of a country on both visible and
